EQUIPMENT - 6831
(Revised and Renumbered from 6855.)
Group 1 and 2 equipment: Capital outlay equipment is categorized either as Group 1 or Group 2 equipment:
- Group 1 equipment is installed equipment such as heating and air conditioning units and is budgeted as part of the construction phase.
- Group 2 equipment is movable equipment, such as tables and chairs (but not replacement equipment) and is usually budgeted as its own project phase, typically following construction.
Not all equipment is classified as capital outlay: Equipment is only budgeted as capital outlay if it is associated with a specific construction project. See section 6803 for the difference between equipment budgeted through the support appropriation versus capital outlay equipment.
Long-lead equipment: Although equipment is generally not approved for purchase prior to the construction phase, there are instances when equipment must be ordered in advance because of installation problems or extended manufacturing time. Subject to Finance and PWB approval, Government Code Section 15792 allows departments to incur equipment obligations to be paid during the fiscal year following the year of a project completion. This authorization:
- Is limited to the purchase of equipment related to capital outlay projects for which the Legislature has appropriated construction funds.
- Provides a maximum obligation of $3,000,000 in estimated equipment costs.
- Applies to both Groups 1 and 2 equipment, although in practice the request is made generally for the latter.
- Is subject to the determination of future year equipment funding needs based on the project schedule.
Agenda package for approval of long-lead equipment. Provide the following:
- All information required in Section 6822, including the standard fiscal reporting requirements and the agenda package.
- Identification of which equipment needs to be ordered early and why.
- Transfer Request (Form 22 and 220, if a DGS-managed project with an active appropriation for the equipment).